TrueCar, Inc. (NASDAQ: TRUE) today announced its
financial results for the fourth quarter and fiscal year ended
December 31, 2019.
Fourth Quarter 2019 Financial
Highlights
- Fourth quarter total revenue of
$89.7 million, down (2)% from $91.1 million in the fourth quarter
of 2018.
- Fourth quarter net loss of $(8.8)
million, or $(0.08) per basic and diluted share, compared to net
loss of $(6.4) million, or $(0.06) per basic and diluted share, in
the fourth quarter of 2018.
- Fourth quarter Non-GAAP net loss(1)
of $(1.3) million, or $(0.01) per basic and diluted share, compared
to Non-GAAP net income of $3.3 million, or $0.03 per basic and
diluted share, in the fourth quarter of 2018.
- Fourth quarter Adjusted EBITDA(2)
of $4.3 million, representing an Adjusted EBITDA margin(3) of 4.8%,
compared to Adjusted EBITDA of $8.7 million, representing an
Adjusted EBITDA margin of 9.6%, in the fourth quarter of 2018.
2019 Financial Highlights
- Total revenue of $353.9 million,
flat from $353.6 million in FY 2018.
- Net loss of $(54.9) million, or
$(0.52) per basic and diluted share, compared to net loss of
$(28.3) million, or $(0.28) per basic and diluted share, in FY
2018.
- Non-GAAP net loss of $(3.5)
million, or $(0.03) per basic and diluted share, compared to
Non-GAAP net income of $11.7 million, or $0.11 per basic and
diluted share, in FY 2018.
- Adjusted EBITDA of $18.9 million,
representing an Adjusted EBITDA margin of 5.3%, compared to
Adjusted EBITDA of $33.5 million, representing an Adjusted EBITDA
margin of 9.5%, in FY 2018.
- Cash and cash equivalents of
approximately $182 million at December 31, 2019.
- Non-GAAP net (loss) income is a
Non-GAAP financial measure. Refer to its definition and
accompanying reconciliation to GAAP net loss below.
- Adjusted EBITDA is a Non-GAAP
financial measure. Refer to its definition and accompanying
reconciliation to GAAP net loss below.
- Adjusted EBITDA margin is a
Non-GAAP financial measure, calculated as Adjusted EBITDA divided
by total revenue.
Key Operating Metrics
- Average monthly unique
visitors(4) increased 19% to 7.7 million in the fourth quarter
of 2019, up from approximately 6.5 million in the fourth quarter of
2018. In FY 2019, average monthly unique visitors decreased (1)% to
approximately 7.4 million, down from 7.5 million in FY 2018.
- Units(5) were 248,037 in the
fourth quarter of 2019, down from 257,017 in the fourth quarter of
2018. In FY 2019, units were 998,495, down from 1,005,029 in FY
2018.
- Monetization(6) was $342
during the fourth quarter of 2019, compared to $334 during the
fourth quarter of 2018. Monetization was $335 during FY 2019,
compared to $333 during FY 2018.
- Franchise dealer count(7) was
12,565 as of December 31, 2019, a (1)% decrease from 12,674 as
of December 31, 2018.
- Independent dealer count(8) was
4,395 as of December 31, 2019, a 20% increase from 3,655 as of
December 31, 2018.
Business Outlook
Our guidance for the first quarter ending March
31, 2020 is as follows:
- Revenues are expected to be in the range of $87 million to $89
million.
- Adjusted EBITDA is expected to be in the range of $3 million to
$4 million.(9)
Our guidance for the full year ending
December 31, 2020 is as follows:
- Revenues are expected to be in the range of $335 million to
$355 million.
- Adjusted EBITDA is expected to be in the range of $15 million
to $20 million.(9)
- We define a monthly
unique visitor as an individual who has visited our website, our
landing pages on our affinity group marketing partner sites or
our mobile applications within a calendar month. We calculate
average monthly unique visitors as the sum of the monthly unique
visitors divided by the number of months in the period.
- We define units as the number of
automobiles purchased from TrueCar Certified Dealers that are
matched to users of TrueCar.com, our mobile applications or the
car-buying sites and mobile applications that we maintain for our
affinity group marketing partners.
- We define monetization as the
average transaction revenue per unit, which we calculate by
dividing all of our transaction revenue (dealer revenue and OEM
incentives revenue) in a given period by the number of units in
that period.
- We define franchise dealer count as
the number of franchise dealers in the network of TrueCar Certified
Dealers at the end of a given period. This number is calculated by
counting the number of brands of new cars sold at each individual
location, or rooftop, regardless of the size of the dealership that
owns the rooftop. Note that this number excludes Genesis
franchises on our program due to Hyundai’s transition of Genesis to
a stand-alone brand. To facilitate period-over-period comparisons,
we have continued to count each Hyundai franchise that also has a
Genesis franchise as one franchise dealer rather than two.
- We define independent dealer count
as the number of dealers in the network of TrueCar Certified
Dealers at the end of a given period that exclusively sell used
vehicles and are not directly affiliated with a new car
manufacturer. This number is calculated by counting each location,
or rooftop, individually, regardless of the size of the dealership
that owns the rooftop.
- We are unable to provide
reconciliations of forward-looking Adjusted EBITDA without
unreasonable effort because of the uncertainty and potential
variability in amount and timing of stock-based compensation,
certain transaction expenses and certain litigation costs, which
are reconciling items between GAAP net loss and Adjusted EBITDA and
could significantly impact GAAP results.
Conference Call Information
Members of our management will host a
conference call today, February 20, 2020, to discuss our
fourth quarter and full year 2019 results at 4:30 p.m. Eastern
Time. To participate, domestic callers should dial 1-877-407-0789
and international callers should dial 1-201-689-8562. A replay of
the call may be accessed the same day from 7:30 p.m. Eastern Time
on Thursday, February 20, 2020 until 11:59 p.m. Eastern Time on
Thursday, March 5, 2020 by dialing 1-844-512-2921 (domestic) or
1-412-317-6671 (international) and entering replay PIN 13698256. An
archived version of the call will also be available upon completion
on the Investor Relations section of our website at ir.truecar.com.
We have used, and intend to continue to use, our Investor Relations
website (ir.truecar.com), Twitter (@TrueCar) and Facebook
(www.facebook.com/TrueCar) as means of disclosing material
non-public information and for complying with our disclosure
obligations under Regulation FD.
Forward-Looking Statements
This press release contains forward-looking
statements. All statements contained in this press release other
than statements of historical fact are forward-looking statements,
including statements regarding our future revenue growth potential
and opportunities and our outlook for the first quarter and full
year 2020, including our expectations regarding future revenue and
adjusted EBITDA. These forward-looking statements are subject to a
number of risks, uncertainties and assumptions that may prove
incorrect, any of which could cause our results to differ
materially from those expressed or implied by such forward-looking
statements, and include, among others, those risks and
uncertainties described under the heading “Risk Factors” in our
Annual Report on Form 10-K for the year ended
December 31, 2018, our Quarterly Reports on Form 10-Q for the
quarters ended March 31, 2019, June 30, 2019 and September 30, 2019
filed with the Securities and Exchange Commission, or SEC, and our
Annual Report on Form 10-K for the year ended December 31, 2019 to
be filed with the SEC. Moreover, we operate in a very competitive
and rapidly-changing environment. New risks emerge from time to
time. It is not possible for our management to predict all risks,
nor can management assess the impact of all factors on our business
or the extent to which any factor, or combination of factors, may
cause actual results to differ materially from those contained in
any forward-looking statements we may make. All forward-looking
statements in this press release are based on information available
to our management as of the date of this press release and,
except as required by law, management assumes no obligation to
update those forward-looking statements, which speak only as of
their respective dates.
Use of Non-GAAP Financial
Measures
This earnings release includes the following
Non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA
margin, Non-GAAP net (loss) income and Non-GAAP net (loss) income
per share. We define Adjusted EBITDA as net loss adjusted to
exclude interest income, interest expense, depreciation and
amortization, stock-based compensation, income (loss) from equity
method investment, certain restructuring costs, certain executive
departure costs, certain transaction expenses, certain litigation
costs, changes in the fair value of contingent consideration and
income taxes. We define Non-GAAP net (loss) income as net loss
adjusted to exclude stock-based compensation, income (loss) from
equity method investment, certain restructuring costs, certain
executive departure costs, certain transaction expenses, certain
litigation costs and changes in the fair value of contingent
consideration. We have provided below a reconciliation of each of
Adjusted EBITDA and Non-GAAP net (loss) income to net loss,
the most directly comparable GAAP financial measure. Neither
Adjusted EBITDA nor Non-GAAP net (loss) income should be considered
as an alternative to net loss or any other measure of financial
performance calculated and presented in accordance with GAAP.
We use Adjusted EBITDA and Non-GAAP net (loss)
income as operating performance measures because each is (i) an
integral part of our reporting and planning processes; (ii) used by
our management and board of directors to assess our operational
performance, and together with operational objectives, as a measure
in evaluating employee compensation and bonuses; and (iii) used by
our management to make financial and strategic planning decisions
regarding future operating investments. We believe that using
Adjusted EBITDA and Non-GAAP net (loss) income facilitates
operating performance comparisons on a period-to-period basis
because these measures exclude variations primarily caused by
changes in the excluded items noted above. In addition, we believe
that Adjusted EBITDA, Non-GAAP net (loss) income and similar
measures are widely used by investors, securities analysts, rating
agencies and other parties in evaluating companies as measures of
financial performance and debt service capabilities.
Our use of each of Adjusted EBITDA and Non-GAAP
net (loss) income has limitations as an analytical tool, and you
should not consider either in isolation or as a substitute for
analysis of our results as reported under GAAP. Some of these
limitations are:
- Adjusted EBITDA does not reflect
the payment or receipt of interest or the payment of income
taxes;
- neither Adjusted EBITDA nor
Non-GAAP net (loss) income reflects changes in, or cash
requirements for, our working capital needs;
- although depreciation and
amortization are non-cash charges, the assets being depreciated and
amortized may have to be replaced in the future, and Adjusted
EBITDA does not reflect cash capital expenditure requirements for
such replacements or for new capital expenditures or any other
contractual commitments;
- neither Adjusted EBITDA nor
Non-GAAP net (loss) income reflects severance charges associated
with the departures of certain of our former executives in the
second quarter of 2019;
- neither Adjusted EBITDA nor
Non-GAAP net (loss) income reflects the severance charges
associated with a restructuring plan initiated and completed in the
first quarter of 2019 to improve efficiency and reduce
expenses;
- neither Adjusted EBITDA nor
Non-GAAP net (loss) income reflects the legal, accounting,
consulting and other third-party fees and costs that we incurred in
connection with the evaluation and negotiation of potential merger
and acquisition transactions;
- neither Adjusted EBITDA nor
Non-GAAP net (loss) income reflects the costs to advance our claims
in certain litigation or the costs to defend ourselves in various
complaints filed against us;
- neither Adjusted EBITDA nor
Non-GAAP net (loss) income considers the potentially dilutive
impact of shares issued or to be issued in connection with
stock-based compensation; and
- other companies, including
companies in our own industry, may calculate Adjusted EBITDA and
Non-GAAP net (loss) income differently than we do, limiting their
usefulness as comparative measures.
Because of these limitations, you should
consider Adjusted EBITDA and Non-GAAP net (loss) income alongside
other financial performance measures, including our net loss, our
other GAAP results and various cash flow metrics. In addition, in
evaluating Adjusted EBITDA and Non-GAAP net (loss) income, you
should be aware that in the future we will incur expenses such as
those that are the subject of adjustments in deriving Adjusted
EBITDA and Non-GAAP net (loss) income and you should not infer from
our presentation of Adjusted EBITDA and Non-GAAP net (loss) income
that our future results will not be affected by these expenses or
any unusual or non-recurring items.
About TrueCar
TrueCar is a leading automotive digital
marketplace that enables car buyers to connect to our network of
16,500 Certified Dealers. We are building the industry's most
personalized and efficient car buying experience as we seek to
bring more of the purchasing process online. Consumers who visit
our marketplace will find a suite of vehicle discovery tools, price
ratings and market context on new and used cars -- all with a clear
view of what's a great deal. When they are ready, TrueCar will
enable them to connect with a local Certified Dealer who shares in
our belief that truth, transparency and fairness are the foundation
of a great car buying experience. As part of our marketplace,
TrueCar powers car-buying programs for over 250 leading brands,
including USAA, Sam’s Club, and American Express. Nearly half of
all new-car buyers engage with TrueCar powered sites, where they
buy smarter and drive happier. TrueCar is headquartered in Santa
Monica, California, with offices in Austin, Texas and Boston,
Massachusetts.
For more information, please visit
www.truecar.com, and follow us on Facebook or Twitter. TrueCar
media line: +1-844-469-8442 (US toll-free) | Email:
pr@truecar.com
TRUECAR, INC. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(In thousands, except per share data) |
(Unaudited) |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
Revenues |
$ |
89,668 |
|
|
|
$ |
91,074 |
|
|
|
$ |
353,880 |
|
|
|
$ |
353,571 |
|
|
Costs and operating
expenses: |
|
|
|
|
|
|
|
Cost of revenue |
7,768 |
|
|
|
8,213 |
|
|
|
33,427 |
|
|
|
31,154 |
|
|
Sales and marketing |
56,410 |
|
|
|
55,952 |
|
|
|
229,342 |
|
|
|
213,415 |
|
|
Technology and development |
12,462 |
|
|
|
14,715 |
|
|
|
57,188 |
|
|
|
61,348 |
|
|
General and administrative |
15,644 |
|
|
|
13,135 |
|
|
|
65,148 |
|
|
|
54,140 |
|
|
Depreciation and amortization |
6,264 |
|
|
|
5,869 |
|
|
|
25,591 |
|
|
|
22,677 |
|
|
Total costs and operating expenses |
98,548 |
|
|
|
97,884 |
|
|
|
410,696 |
|
|
|
382,734 |
|
|
Loss from operations |
(8,880 |
) |
|
|
(6,810 |
) |
|
|
(56,816 |
) |
|
|
(29,163 |
) |
|
Interest income |
673 |
|
|
|
1,072 |
|
|
|
3,495 |
|
|
|
3,314 |
|
|
Interest expense |
— |
|
|
|
(664 |
) |
|
|
— |
|
|
|
(2,649 |
) |
|
Loss from equity method
investment |
(543 |
) |
|
|
— |
|
|
|
(1,280 |
) |
|
|
— |
|
|
Loss before income taxes |
(8,750 |
) |
|
|
(6,402 |
) |
|
|
(54,601 |
) |
|
|
(28,498 |
) |
|
Provision for (benefit from)
income taxes |
63 |
|
|
|
(9 |
) |
|
|
289 |
|
|
|
(177 |
) |
|
Net loss |
$ |
(8,813 |
) |
|
|
$ |
(6,393 |
) |
|
|
$ |
(54,890 |
) |
|
|
$ |
(28,321 |
) |
|
Net loss per share: |
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.08 |
) |
|
|
$ |
(0.06 |
) |
|
|
$ |
(0.52 |
) |
|
|
$ |
(0.28 |
) |
|
Weighted average common shares
outstanding, basic and diluted |
106,681 |
|
|
|
104,065 |
|
|
|
105,805 |
|
|
|
102,149 |
|
|
TRUECAR, INC. |
CONSOLIDATED BALANCE SHEETS |
(In thousands) |
(Unaudited) |
|
|
|
December 31, |
|
|
2019 |
|
2018 |
|
|
|
|
|
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
181,534 |
|
|
|
$ |
196,128 |
|
|
Accounts receivable, net |
|
44,888 |
|
|
|
47,760 |
|
|
Prepaid expenses |
|
7,215 |
|
|
|
7,468 |
|
|
Other current assets |
|
6,104 |
|
|
|
4,103 |
|
|
Total current assets |
|
239,741 |
|
|
|
255,459 |
|
|
Property and equipment, net |
|
29,797 |
|
|
|
61,511 |
|
|
Operating lease right-of-use assets |
|
36,064 |
|
|
|
— |
|
|
Goodwill |
|
73,311 |
|
|
|
73,311 |
|
|
Intangible assets, net |
|
17,260 |
|
|
|
23,451 |
|
|
Equity method investment |
|
21,894 |
|
|
|
— |
|
|
Other assets |
|
3,620 |
|
|
|
7,228 |
|
|
Total assets |
|
$ |
421,687 |
|
|
|
$ |
420,960 |
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
21,336 |
|
|
|
$ |
26,305 |
|
|
Accrued employee expenses |
|
5,969 |
|
|
|
4,349 |
|
|
Operating lease liabilities, current |
|
5,875 |
|
|
|
— |
|
|
Accrued expenses and other current liabilities |
|
20,990 |
|
|
|
10,908 |
|
|
Total current liabilities |
|
54,170 |
|
|
|
41,562 |
|
|
Deferred tax liabilities |
|
783 |
|
|
|
568 |
|
|
Lease financing obligation, net of current portion |
|
— |
|
|
|
22,987 |
|
|
Operating lease liabilities, net of current portion |
|
37,127 |
|
|
|
— |
|
|
Other liabilities |
|
2,336 |
|
|
|
9,290 |
|
|
Total liabilities |
|
94,416 |
|
|
|
74,407 |
|
|
Stockholders’
Equity |
|
|
|
|
Common stock |
|
11 |
|
|
|
10 |
|
|
Additional paid-in capital |
|
759,322 |
|
|
|
720,025 |
|
|
Accumulated deficit |
|
(432,062 |
) |
|
|
(373,482 |
) |
|
Total stockholders’ equity |
|
327,271 |
|
|
|
346,553 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
421,687 |
|
|
|
$ |
420,960 |
|
|
TRUECAR, INC. |
RECONCILIATION OF NET LOSS TO ADJUSTED
EBITDA |
(In thousands) |
(Unaudited) |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
Net loss |
$ |
(8,813 |
) |
|
|
$ |
(6,393 |
) |
|
|
$ |
(54,890 |
) |
|
|
$ |
(28,321 |
) |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
Interest income |
(673 |
) |
|
|
(1,072 |
) |
|
|
(3,495 |
) |
|
|
(3,314 |
) |
|
Interest expense |
— |
|
|
|
664 |
|
|
|
— |
|
|
|
2,649 |
|
|
Depreciation and amortization |
6,264 |
|
|
|
5,869 |
|
|
|
25,591 |
|
|
|
22,677 |
|
|
Stock-based compensation (1) |
6,592 |
|
|
|
8,903 |
|
|
|
37,974 |
|
|
|
37,219 |
|
|
Share of net loss of equity method investment |
543 |
|
|
|
— |
|
|
|
1,280 |
|
|
|
— |
|
|
Certain litigation costs (2) |
139 |
|
|
|
161 |
|
|
|
1,575 |
|
|
|
2,157 |
|
|
Executive departure costs (3) |
138 |
|
|
|
— |
|
|
|
5,089 |
|
|
|
— |
|
|
Restructuring charges (4) |
— |
|
|
|
— |
|
|
|
3,280 |
|
|
|
— |
|
|
Transaction costs (5) |
— |
|
|
|
620 |
|
|
|
1,926 |
|
|
|
620 |
|
|
Change in fair value of contingent consideration |
75 |
|
|
|
— |
|
|
|
300 |
|
|
|
— |
|
|
Provision for (benefit from) income taxes |
63 |
|
|
|
(9 |
) |
|
|
289 |
|
|
|
(177 |
) |
|
Adjusted EBITDA |
$ |
4,328 |
|
|
|
$ |
8,743 |
|
|
|
$ |
18,919 |
|
|
|
$ |
33,510 |
|
|
- The excluded amount includes
stock-based compensation of $7.2 million incurred in the second
quarter of 2019 associated with the acceleration of certain equity
awards and the extension of the exercise period for certain vested
stock options related to the departures of certain executives,
including our former chief executive officer.
- The excluded amounts relate to
legal costs incurred in connection with complaints filed by
non-TrueCar dealers and the California New Car Dealers Association
against TrueCar and consumer class action lawsuits. We believe the
exclusion of these costs is appropriate to facilitate comparisons
of our core operating performance on a period-to-period basis.
Based on the nature of the specific claims underlying the excluded
litigation matters, once these matters are resolved, we do not
believe our operations are likely to entail defending against the
types of claims raised by these matters. We expect the cost of
defending these claims to continue to be significant pending that
resolution.
- The excluded amounts represent
severance charges associated with the separation of our former
chief executive officer and the termination of executive-level
employees in connection with the change in chief executive officer
and related recruiting fees for the search of a new chief executive
officer. For the three months ended December 31, 2019, we incurred
$0.1 million in related recruiting fees. For the year ended
December 31, 2019, we incurred $4.6 million in executive severance
costs, as well as related recruiting fees of $0.5 million. We
believe excluding the impact of these terminations and the
associated chief executive officer recruiting fees is consistent
with our use of these non-GAAP measures as we do not believe they
are a useful indicator of our ongoing operating results.
- The excluded amount includes $3.3
million in charges associated with a restructuring plan undertaken
in the first quarter of 2019 to improve efficiency and reduce
expenses. We believe excluding the impact of these charges is
consistent with our use of these non-GAAP measures as we do not
believe they are a useful indicator of our ongoing operating
results.
- The excluded amounts represent
external legal, accounting, consulting and other third-party fees
and costs we incurred in connection with the evaluation and
negotiation of potential acquisition transactions. These expenses
are included in general and administrative expenses in our
consolidated statements of operations. We consider these fees
and costs, which are associated with potential merger and
acquisition transactions outside the normal course of our
operations, to be unrelated to our underlying results of operations
and believe that their exclusion provides investors with a more
complete understanding of the factors and trends affecting our
business operations.
TRUECAR, INC. |
RECONCILIATION OF NET LOSS TO NON-GAAP NET (LOSS)
INCOME |
(In thousands, except per share
amounts) |
(Unaudited) |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
Net loss |
$ |
(8,813 |
) |
|
|
$ |
(6,393 |
) |
|
|
$ |
(54,890 |
) |
|
|
$ |
(28,321 |
) |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
Stock-based compensation (1) |
6,592 |
|
|
|
8,903 |
|
|
|
37,974 |
|
|
|
37,219 |
|
|
Loss from equity method investment |
543 |
|
|
|
— |
|
|
|
1,280 |
|
|
|
— |
|
|
Certain litigation costs (2) |
139 |
|
|
|
161 |
|
|
|
1,575 |
|
|
|
2,157 |
|
|
Executive departure costs (3) |
138 |
|
|
|
— |
|
|
|
5,089 |
|
|
|
— |
|
|
Restructuring charges (4) |
— |
|
|
|
— |
|
|
|
3,280 |
|
|
|
— |
|
|
Transaction costs (5) |
— |
|
|
|
620 |
|
|
|
1,926 |
|
|
|
620 |
|
|
Changes in the fair value of contingent consideration |
75 |
|
|
|
— |
|
|
|
300 |
|
|
|
— |
|
|
Non-GAAP net (loss) income
(6) |
$ |
(1,326 |
) |
|
|
$ |
3,291 |
|
|
|
$ |
(3,466 |
) |
|
|
$ |
11,675 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP net (loss) income per
share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.01 |
) |
|
|
$ |
0.03 |
|
|
|
$ |
(0.03 |
) |
|
|
$ |
0.11 |
|
|
Diluted |
$ |
(0.01 |
) |
|
|
$ |
0.03 |
|
|
|
$ |
(0.03 |
) |
|
|
$ |
0.11 |
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
106,681 |
|
|
|
104,065 |
|
|
|
105,805 |
|
|
|
102,149 |
|
|
Diluted |
106,681 |
|
|
|
105,945 |
|
|
|
105,805 |
|
|
|
104,378 |
|
|
- The excluded amount includes
stock-based compensation of $7.2 million incurred in the second
quarter of 2019 associated with the acceleration of certain equity
awards and the extension of the exercise period for certain vested
stock options related to the departures of certain executives,
including our former chief executive officer.
- The excluded amounts relate to
legal costs incurred in connection with complaints filed by
non-TrueCar dealers and the California New Car Dealers Association
against TrueCar and consumer class action lawsuits. We believe the
exclusion of these costs is appropriate to facilitate comparisons
of our core operating performance on a period-to-period basis.
Based on the nature of the specific claims underlying the excluded
litigation matters, once these matters are resolved, we do not
believe our operations are likely to entail defending against the
types of claims raised by these matters. We expect the cost of
defending these claims to continue to be significant pending that
resolution.
- The excluded amounts represent
severance charges associated with the separation of our former
chief executive officer and the termination of executive-level
employees in connection with the change in chief executive officer
and related recruiting fees for the search of a new chief executive
officer. For the three months ended December 31, 2019, we incurred
$0.1 million in related recruiting fees. For the year ended
December 31, 2019, we incurred $4.6 million in executive severance
costs, as well as related recruiting fees of $0.5 million. We
believe excluding the impact of these terminations and the
associated chief executive officer recruiting fees is consistent
with our use of these non-GAAP measures as we do not believe they
are a useful indicator of our ongoing operating results.
- The excluded amount includes $3.3
million in charges associated with a restructuring plan undertaken
in the first quarter of 2019 to improve efficiency and reduce
expenses. We believe excluding the impact of these charges is
consistent with our use of these non-GAAP measures as we do not
believe they are a useful indicator of our ongoing operating
results.
- The excluded amounts represent
external legal, accounting, consulting and other third-party fees
and costs we incurred in connection with the evaluation and
negotiation of potential acquisition transactions. These expenses
are included in general and administrative expenses in our
consolidated statements of operations. We consider these fees
and costs, which are associated with potential merger and
acquisition transactions outside the normal course of our
operations, to be unrelated to our underlying results of operations
and believe that their exclusion provides investors with a more
complete understanding of the factors and trends affecting our
business operations.
- There is no income tax impact
related to the adjustments made to calculate Non-GAAP net (loss)
income because of our available net operating loss carryforwards
and the full valuation allowance recorded against our net deferred
tax assets for all periods shown.
Investor Relations Contact:
Danny Vivier
Vice President, Investor Relations and Strategic Finance
424-258-8017
dvivier@truecar.com
Public Relations & Media Contact
Shadee Malekafzali
Senior Director, Public Relations
424-258-8694
shadee@truecar.com
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